Don't cash in on KNRCON now, it performed well
18 Jan, 201916 min read
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KNRCON ranked among the best performers today. On a longer term basis, investors in KNR CONSTRU LTD. made +0.1% per day. Friday's performance of +1.64% was a outperformance compared to it's daily average.
KNRCON showed a strong bullish trend over the last 3 months. During this period KNRCON delivered +15.42% and saw a maximum drawdown of -7.06%. There was a long signal during this period which returned +8.24%.
KNRCON has been outperforming the NIFTY-50 index in recent time. It showed significant outperformance (compared to the NIFTY-50 index) from 17 Feb, 2016 to 26 Dec, 2017. Over the last 3 years and 1 month, KNRCON outperformed the NIFTY-50 index on 47% days. Which indicates that on days KNRCON outperforms the NIFTY-50 index, it's performance is marginally better than on the days it underperforms the NIFTY-50 index.
During the last three months KNRCON was mostly profitable and delivered on average +0.24% per day. It's best return during this period (of +6.06%) was on Thursday, 1 Nov, 2018. While it's worst loss in the same period (of -4.13%) was on Thursday, 25 Oct, 2018. The longest stort-term trend during this period was 5 losing days, which started on 12 Nov, 2018 and ended on 16 Nov, 2018. This bearish trend lost -2.97% of investor capital.
The last 12 months saw KNRCON's investors making profits in 7 months and incurring losses in 5 months. During the last year, KNRCON delivered profits in more months than NIFTY-50 index. KNRCON was also a more risky investment than NIFTY-50 index as it's worst month in the last year, Jun 2018, returned -26.27% compared to -6.42% returned by NIFTY-50 index in Sep 2018. KNRCON had a longer winning streak of profitable months than NIFTY-50 index. It went up in 3 straight months (from Nov 2018 to Jan 2019) during which period it delivered +19.62%. It is interesting to note that both KNRCON and NIFTY-50 index significantly outperform during months when quarterly/annual results are announced.
"Wide diversification is only required when investors do not understand what they are doing.
KNRCON is currently seeing overall fall in volatility. In comparison, the NIFTY-50 index is seeing decrease in volatility. During the last three months, there was a significant fall in KNRCON's volatility from 19 Oct, 2018 to 28 Nov, 2018. While there was a significant fall in the NIFTY-50 index's volatility from 31 Oct, 2018 to 5 Dec, 2018.
Advanced/professional short-term investors should note that KNRCON has significant negative skewness in it's return distribution. This indicates that KNRCON is very risky for short-term investment and can significantly underperform for long durations.
KNRCON has more chance of extreme outcomes than the NIFTY-50 index. Therefore, KNRCON must receive a lower allocation than NIFTY-50 in your portfolio. NIFTY-50 index usually has shorter drawdown period than KNRCON.
Based on your interest in KNRCON you may find it interesting to know that PDSMFL and APARINDS have both performed similar to KNRCON and can be considered by investors as alternative investment options.
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